Türkiye has officially concluded its participation in the FX-protected deposit scheme, known as KKM, as account volumes have dwindled to zero, according to recent banking data. The program, initiated at the end of 2021, aimed to shield Turkish lira holders from losses due to currency depreciation. However, a shift in economic strategy toward more traditional policies led authorities to begin phasing it out in 2023.
By 2025, the renewal of deposits under the KKM scheme ceased, resulting in a gradual reduction of account volumes. Data from the Banking Regulation and Supervision Agency confirmed that the balances had diminished significantly before finally reaching zero, marking the end of the scheme.
Treasury and Finance Minister Mehmet Şimşek highlighted that completing the exit from the KKM scheme represents a significant milestone in Türkiye’s economic agenda. This development aligns with the government’s broader efforts to enhance macro-financial stability and bolster confidence in the national currency, the Turkish lira.
The KKM’s conclusion reflects Türkiye’s commitment to adopting more conventional economic policies, as it moves away from previous strategies designed to mitigate currency risks. The government remains focused on continuing policies that aim to strengthen the financial system and restore trust in the Turkish lira.